Trade-Ideas LLC identified

Shutterstock

(

SSTK

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Shutterstock as such a stock due to the following factors:

  • SSTK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $45.7 million.
  • SSTK has traded 91,310 shares today.
  • SSTK traded in a range 202.8% of the normal price range with a price range of $4.31.
  • SSTK traded above its daily resistance level (quality: 363 days, meaning that the stock is crossing a resistance level set by the last 363 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on SSTK:

Shutterstock, Inc. provides content products and services in North America, Europe, and internationally. SSTK has a PE ratio of 77. Currently there are 2 analysts that rate Shutterstock a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Shutterstock has been 354,000 shares per day over the past 30 days. Shutterstock has a market cap of $1.7 billion and is part of the services sector and diversified services industry. The stock has a beta of 1.63 and a short float of 41.5% with 5.47 days to cover. Shares are up 50.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Shutterstock as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 89.2% when compared to the same quarter one year prior, rising from $3.24 million to $6.13 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 20.7%. Since the same quarter one year prior, revenues rose by 19.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SHUTTERSTOCK INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SHUTTERSTOCK INC reported lower earnings of $0.54 versus $0.62 in the prior year. This year, the market expects an improvement in earnings ($1.42 versus $0.54).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Internet Software & Services industry and the overall market, SHUTTERSTOCK INC's return on equity is below that of both the industry average and the S&P 500.
  • SSTK has underperformed the S&P 500 Index, declining 16.50% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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